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Why Loopring (LRC) will explode : ethereum

 

This is part 2 of a previous post: “Loopring (LRC): Why it will explode”. I hope that this offers additional insight into Loopring technology, the impact that it can make in the near future, as well as why many believe that the price will explode.

If you haven’t read part 1, I highly recommend checking it out… since part 2 is simply supplemental and doesn’t cover the basics of what Loopring is nearly as much… and if you are new to Loopring it may answer a lot of the questions you have.

Part 1: https://www.reddit.com/r/loopringorg/comments/qosfa4/loopring_lrc_why_it_will_explode/

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I am not a financial advisor. I am not giving you financial advice. I am not advising you in any way. I am simply providing opinions, and entertainment. Please do your own research, and do not place trades based off of what you read / learn here.

Feel free to cross post. Please don’t copy and paste without giving credit. If you use the material in a YouTube video, please credit this original source as a mention in the video + link in the description, and please also credit the snippet sources if you use them. Sharing is awesome, but please give credit. I work very hard on these.

I am not a crypto expert by any means, and am simply sharing the research that I have found. In this research it seems to me that the sentiment and outlook towards Loopring is overwhelmingly bullish, with concern to the impact that the technology will make, as well as how high the price can go.

Especially when considering where the price might go… make your own considerations about the possibilities, and understand that I am only sharing my opinion, as well as hypotheticals related to considering the price of Loopring if it matches the market cap of other popular coins in the future. These comparisons do not imply that prices will reach the mentioned levels. I simply offer insight to consider in your own deeper research.

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Again part 1 will tell you much more about this, but let’s revisit the 3 main things that make Loopring an incredible technology:

Security, super low transaction fees, and super speed

Loopring achieves this trifecta through “ZK Rollups”, which is a Layer 2 Solution built on top of Ethereum, and is said to be the best Layer 2 / Scaling solution for Ethereum. In part 1, I mentioned the power of ZK Rollups, and how people are saying that they are the future of blockchain… and further below there is a variety of information that expands on this.

https://loopring.io/#/

https://loopring.org/#/

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But before we talk more about ZK Rollups, let’s take a look at some huge things to look forward to!

The perfect storm: Fundamentals + Hype

I believe more than ever that Loopring will see the perfect storm of hype clashing with solid fundamentals. That’s the beauty of Loopring’s rise… is that the hype isn’t just ordinary hype for an incoming pump… it is genuine hype for an incredibly powerful technology that can revolutionize the financial system. On top of this, it is hype for the impending partnership announcement, which I will discuss below.

I don’t think the crypto world has ever seen such a bullish setup, and I think that a lot of people are not prepared for what is about to happen, including those who are holding… those who already sold… and those who have never even heard of Loopring.

As expected, there have been many more YouTube videos coming out about Loopring, and I believe soon that we will start seeing Loopring videos from big YouTubers like Meet Kevin etc.

After the partnership announcement, I would not be surprised if Loopring was mentioned in mainstream media. It’s going to be a huge event, when a huge company like GameStop (probably is GameStop) announces their revolutionary gas-free NFT marketplace, that is built on top of a ground-breaking Layer 2 ZK Rollup technology that was built by… Loopring! Imagine more than just a place to buy digital art and minted collectibles… imagine a place where digital game assets can be traded, and where there is a connectivity between a multitude / metaverse of games. It’s going to rock the crypto world, the gaming world, and the entire digital world.

Personally, I have never seen such a bullish outlook in the crypto world that is based on the technology’s fundamentals / capabilities, and it’s still early.

The power of the partnership

The partnership IS coming, and the impending buying pressure that will follow the official announcement is going to be like a tsunami-sized wave of investors.

All signs point heavily towards Loopring’s partner being GameStop, and although I personally have no doubt about this, many do… and that’s a good thing. These people are a compressed spring that’s going to pop once they hear the official announcement. So many people are apprehensive about whether the partner is GameStop or not… but either way a partnership with a big company is coming.

But wait to see what happens when people make their first gas-free NFT transaction on the new platform. The capability of Loopring will finally click with people, and the news will spread like wildfire.

The final puzzle piece

The consensus online is that there is one missing piece in all of this, and it’s going to be put in place VERY soon. The “counterfactual wallet” will soon be released, and this will be like opening the floodgates to a giant water dam. Now it costs over $100 in ETH gas fees to create the Loopring wallet, and after the new update people will be able to create a wallet for free on layer 2. Suddenly this amazing technology won’t have a barrier to entry anymore, and people are waiting to use this free wallet, like people who camp out at the mall the night before black Friday.

Loopring can’t become what it needs to be until the free wallet is released. Loopring’s partner can’t launch their marketplace until this happens. Loopring can’t prove that they can blow everyone out of the water until people can open a wallet for free, and this is right around the corner. This release was technically stated to be expected a week ago, so we can expect it very soon… either before, or at the same time as the partnership announcement.

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Future Financial System

I think that Loopring’s own vision should be considered when thinking of where such a powerful technology can go in the future. They keep saying that they are building the “Future Financial System”. The more that I learn, the more I believe that the long term uses of Loopring will meet that vision.

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Scalable transfers / payments, AND trading

What does the “Future Financial System” mean? Loopring enables low cost payments, low cost trading, and does so in a very secure way. It’s a simple statement, but the implications are huge. In Loopring’s words, they can “outcompete incumbent fintech”.

Loopring is the first scalable Layer 2 order-book based exchange. In other words it has the capability of trading in the same way that the stock market does, but it is decentralized.

Matthew Finestone talking about Loopring transfers & trading:

Source: Medium.com | https://medium.com/loopring-protocol/loopring-pay-is-live-zkrollup-transfers-on-ethereum-770d35213408

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Orderbook based exchanges:

Source: Blogs.loopring.org | https://blogs.loopring.org/dexes-rising-next-chapter-high-performance-orderbook-exchanges-on-ethereum/

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Ring matching technology:

Source: Blogs.loopring.org | https://blogs.loopring.org/a-beginners-guide-to-loopring-my-experience-as-an-intern/

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Companies are going to want LRC (badly)

I believe that when companies see what Loopring can do via the upcoming NFT marketplace / partner launch… with no gas fees… and free wallets… there are going to be a lot of companies that want to use the most powerful blockchain technology for a wide variety of things, from entertainment, to finance.

They aren’t just going to want to use the technology, they are going to want to buy the coins… because you need to have coins to use the technology / create a DEX (decentralized exchange). They are going to be willing to pay BIG to bring their companies into the future, and to build on the strongest platform.

The snippet below from Kraken.com describes where LRC gets its value.

https://www.kraken.com/en-us/learn/what-is-loopring-lrc

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ZK Rollups are the future

In part 1, I stated that based on everything I had read, that ZK Rollups are said to be the best solution for scaling Ethereum… and below are different sources where you can see this.

I have read over and over that Optimistic Rollups are easier, but that ZK Rollups are better.

First, here is a statement directly from Vitalik Buterin:

Source: vitalik.ca | https://vitalik.ca/general/2021/01/05/rollup.html

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Source: forkast.news | https://forkast.news/vitalik-buterin-layer-2-future-of-ethereum-scaling/

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Other ZK Rollups?

Source: immutable.com | https://www.immutable.com/blog/a-guide-to-nft-scaling-solutions

I acknowledge that Loopring isn’t the only ZK Rollup. But it still appears that Loopring has the most robust, well-developed ZK Rollup, with the most potential. That being said, I think that Immutable X has lots of promise too, but I believe that Loopring is on a whole other level, with capabilities / a vision that goes far beyond its competitors. See why Immutable X chose ZK Rollups, below.

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Below is a comparison of the capabilities of Loopring vs. Immutable X

Source: sourceforge.net | https://sourceforge.net/software/compare/Immutable-X-vs-Loopring/

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How high can Loopring go?

It can be helpful to consider the market caps of other cryptos, and to compare them to cryptos that you are considering… to get an idea for how much growth a certain token might experience.

These type of comparisons, as demonstrated below, are only hypothetical, and it is up for each individual to assess how likely it is for Loopring to reach the market caps / values of other cryptocurrencies. We are saying what the price of Loopring could be IF Loopring reaches the market cap of other popular coins in the future.

That being said, I am very interested to hear your opinion on where LRC might go in the future, and which other coins that you think it may be able to surpass. Personally, I think that Loopring will eventually take the #3 spot in crypto, with a market cap of over 100 billion. This does not represent the limit of where I think it can go long term, especially considering that the entire crypto market will grow in years to come.

Remember that if we are talking about what the price may be in a matter of years, then the entire crypto market will have grown by then, including the market caps of all the major coins. In years ahead, our perception of what constitutes a high market cap will be different. The market caps of the coins in the top 10 will be much higher by then. So consider that possibility when comparing Loopring to the current value of other cryptocurrencies. To me, this consideration makes the comparisons more modest, but again, form your own opinion based on your own research, and decide what you think for yourself.

Below is a table that shows the values of most of the top crypto currencies. This table also shows a comparison to Loopring, where you can see what the price of Loopring would be if its market cap reaches the market cap of the other coins. Remember the word “if”. This is hypothetical.

This comparison is considering the current price of Loopring at $2.73, and a market cap of 3.6 Billion.

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On the lower end, if Loopring rises to the value of Uniswap, the price of Loopring will be around $12 (4x gain).

If Loopring beats the doggy meme coins, its price will be above $25 (9x gain)

If Loopring reaches 100 billion market cap, its price would be around $75 (28x gain)

Where do you think that Loopring fits, in the short-term and long-term?



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